You don't need to worry. Let's assume by the time you are 65, you have paid off your mortgage. And you would have saved $510k over 17 years. You can then sell your condo and downgrade to a studio condo and you would have cash balance of at least $500k. So, in total, you have $1m to invest in dividend stocks giving 5% yield or $50k pa or $4,166 pm. Your
CPF Life will give you say $1,500 pm for each of you so your combined
CPF Life will give you $3k pm. In total, your passive income will be $7,166 pm. If your kids give you $1k each, if you have two kids, you will get $2k pm. So, your cash flow per month will be $9,166 or $110k pa. Huge amount for retirement.
Lessons learnt:
1. Your property is your greatest retirement asset.
2. Your kids are also your assets. Marry and have kids.
Quote:
Originally Posted by Unregistered
Couple working in the commercial sector, 48/42. Total income, $195k pa. Savings, $30k pa. Bought a condo now worth $1.2m. Mortgage outstanding, $700k. Owns a 2.4L continental car, no loan. Children are in primary school. We live a modest middle class lifestyle. Holidays to Asian countries, twice a year. Total net worth, $1.3m.
Any comments whether we can retire at 65? How much is enough? How much do we need every month as retirement income in 20 years time?
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